The Great Moderation Consensus Among Macroeconomists Is That Fiscal Policy

question 147

Multiple Choice

The Great Moderation consensus among macroeconomists is that fiscal policy should be used sparingly because:

• A) it cannot be effective.
• B) of policy lags.
• C) it always destabilizes the economy.
• D) of the risk of government waste.

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Definitions:

Subrogation

The process by which one party assumes the legal rights of another party to collect a debt or claim.

Co-makers

Individuals or entities that jointly sign a loan or credit agreement, sharing equal liability for the repayment of the debt.

Cosureties

Two or more parties who jointly agree to guarantee the debt or obligation of another, sharing the liability.

Conditional Guarantor

A party that agrees to fulfill the obligations of a debtor, but only under specific conditions outlined in an agreement.